REG - Parkmead Group (The) - Update on Renewable Energy Projects

ParkmeadAnnouncement

06/10/2022 07:01

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RNS Number : 9400B  Parkmead Group (The) PLC  06 October 2022

6 October 2022

 

The Parkmead Group plc

("Parkmead", the "Group" or the "Company")

 

Strong revenue growth at Kempstone Hill and progress on high-impact Pitreadie
renewable energy project

Parkmead, the independent energy group, is pleased to provide an update on its
onshore renewable energy projects in the UK.

Acquisition of Kempstone Hill Wind Farm now fully integrated, record
electricity revenue

The acquisition of the Kempstone Hill Wind Farm, completed in February 2022,
has now been fully integrated into the Group. The acquisition was immediately
revenue and cash flow enhancing. In the last 12 months the wind farm generated
2,850 MWh with a 99.7% availability, enough to power up to 1,000 homes.
Kempstone Hill benefits from an attractive inflation-linked, Feed-in Tariff
through until 2036. The annual PPA was renegotiated for the year commencing 1
August 2022 and this has seen wholesale export electricity prices increase by
nearly 250% leading to a significant boost in near term cashflow.

Parkmead has been assessing a number of opportunities to further enhance the
Kempstone Hill Wind Farm, such as the potential inclusion of solar power
generation, and expanding sales of electricity to local industrial users.

Enhanced opportunity for hybrid renewable energy development at Pitreadie

Initial feasibility studies on the Pitreadie project have confirmed the
potential for a wind farm development.

The major shift in the electricity generation market has changed the dynamics
of renewable projects and Parkmead has decided to progress Pitreadie based on
a hybrid of renewable technologies, rather than one just focused on wind. To
that effect, Parkmead is progressing the necessary work required to allow the
Company to consider submitting a full planning application for a combined wind
and solar farm, with added potential for a battery storage unit.

Tom Cross, Executive Chairman, commented:

"The Kempstone Hill Wind Farm acquisition has been complementary to our
earlier stage, high-upside renewable energy projects, which we are now
progressing at pace. We are delighted by the contribution made to date by
Kempstone Hill to the Group, especially considering the significant upside
arising from the increases in wholesale electricity prices seen in the last 12
months.

The Parkmead team continues to assess all opportunities to expand our
Renewable Energy division, both organically and through acquisition."

Enquiries:

 

 The Parkmead Group plc                           +44 (0) 1224 622200
 Tom Cross (Executive Chairman)
 Ryan Stroulger (Chief Financial Officer)

 finnCap Ltd  (NOMAD and Broker to Parkmead)      +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Andrew Burdis - ECM

 

 

About Parkmead

 

The Parkmead Group is an independent, UK and Netherlands focused energy
business. Its shares are listed on the AIM market of the London Stock Exchange
(AIM: PMG). The Group currently produces natural gas from a portfolio of four
fields across the Netherlands and holds significant additional oil and gas
interests. Parkmead is also developing renewable energy opportunities within
its portfolio.

 

For further information please refer to Parkmead's website at
www.parkmeadgroup.com

 

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